For healthcare companies, job vacancies or low numbers of staff equate to lost productivity and revenue. Overworking your medical staff can also lead to a high turnover rate in your practice. Managing your workforce through medical personnel is critical in today’s competitive job market. One of the main factors in creating jobs has been the identification of a pool of qualified job candidates. There are many benefits to working on temporary assignments as it allows the company to assess the many experiences and qualities the employee has to offer.
While larger companies and government agencies have long capitalized on this ready task force, smaller companies are joining the game. Companies are now looking at medical staffing as one of the available solutions. Depending on your industry, the turnover rate can be as high as 75% and actual labor costs can exceed 50% of the employee’s compensation. Medical staffing is the answer for many offices.
Employees are the most expensive investment a company can make.
Hiring the wrong employee can be costly to a company’s bottom line if medical personnel are not used. The first 90 days are usually the most expensive to have an employee on board.
The flexibility factor
The right medical staffing solution provides workforce flexibility and access to skilled talent. This is also an evaluation period to determine if the employee is a great behavioral or motivational fit for your company. Staffing allows companies to avoid the burden of employer costs associated with hiring and training an employee. Does the employers’ so-called “charged rate” for each employee amount to approximately 40% more than their rate of pay? For example, for a $ 14-per-hour worker, your actual cost would be $ 19.63 per hour, or about 40% more than your base salary. This so-called “charged rate” would include the costs that you would pay as an employer in each pay period. You will not be responsible for paying taxes, health insurance, workers compensation and job training, etc.
Jobs people
Because the employee is actually an employee of the staffing company and not the employer, the employer’s costs are the sole responsibility of the staffing company. Many business owners don’t know that the full cost of using a medical personnel business is a business that is written off.
The personnel company is responsible for paying payroll taxes and benefit costs. As an employer, you are reimbursed for these costs which are included in the hourly billing rate. Also, they charge a little more than that because they have to cover their overhead and make a profit. You pay that too. You can deduct as ordinary business expense what you pay to the staffing company. The deductions are likely to be somewhat higher than if you did it yourself. You will benefit from having the employee and will be able to pay the costs you paid to the medical personnel company.
